PNB Gilts Limited (PNBGILTS) AI Stock Analysis

• Market Cap: ₹14.22B
• Dividend Yield: 1.25%
• Average Volume (3M): 43.27K
• Price to Earnings (P/E): 5.8
• Beta (1Y): 1.74
• Revenue Growth: -10.05%
• EPS Growth: -18.64%
• Country: IN
• Employees: 52
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 3.00
• Shares Outstanding: 180,010,130
• 10 Day Avg. Volume: 44,866
• 30 Day Avg. Volume: 43,271
• PEG Ratio: 0.03
• Price to Book (P/B): 0.98
• Price to Sales (P/S): 0.98
• P/FCF Ratio: -7.68
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: ₹81.00 ▲(2.91% Upside)

PNB Gilts Limited's overall stock score is primarily influenced by its financial performance and valuation. Strong operational efficiency is offset by significant challenges in revenue growth and cash flow management. The stock's low P/E ratio suggests potential undervaluation, but technical indicators point to bearish momentum. The absence of recent earnings call data and corporate events limits additional insights.

Positive Factors

Very high gross margins

Gross margins above 97% indicate an extremely efficient cost structure in core gilt trading and advisory. Such high gross profitability provides a durable cushion to absorb revenue volatility, funds reinvestment in client services, and supports sustainable operating leverage over time.

Strategic parentage and market‑making role

Being a subsidiary of Punjab National Bank and serving as a market‑maker in government securities grants structural access to institutional clients, auctions, and balance‑sheet support. These relationships and franchise position create durable distribution advantages and liquidity provisioning capabilities.

Recovery in return on equity

ROE rising to 15% from a prior negative level signals management progress in restoring capital efficiency and profitability. If sustained, higher ROE supports reinvestment and potential shareholder returns, reflecting improved operational execution rather than a one‑off accounting effect.

Negative Factors

Extreme leverage

A debt‑to‑equity ratio above 16x represents extreme leverage that materially increases interest costs, lowers financial flexibility, and raises solvency risk. This structural capital-structure weakness constrains strategic options and magnifies downside in adverse rate or market conditions until deleveraging occurs.

Persistent negative operating cash flow

Consistent negative operating and free cash flows indicate earnings are not converting into cash, forcing reliance on external funding or parent support. This cash conversion weakness undermines liquidity, capital allocation and the ability to sustain dividends or invest without raising new debt amid already high leverage.

Inconsistent revenue and volatile net margins

Volatile revenue growth and episodic net losses show the business remains exposed to market cycles and execution variability. For a market‑making and advisory firm, inconsistent top‑line undermines margin sustainability and makes long‑term planning, capital returns and deleveraging efforts harder to achieve reliably.

PNB Gilts Limited Business Overview & Revenue Model

Company Description

PNB Gilts Ltd. operates as a primary dealer in government securities in India. The company is involved in underwriting government securities issuances; and trading of fixed income instruments, such as government securities, treasury bills, state development loans, corporate bonds, and interest rate swaps, as well as various money market instruments, including certificates of deposits, commercial papers, etc.; and provision of custodian services to its constituents. It also provides gilts accounts and mutual funds, and bonds issued by public sector undertakings and other corporate bodies. In addition, the company trades in short term money market instruments comprising call/notice/term money, repo/reverse repo, inter corporate deposits, and commercial papers. It serves provident funds trusts, regional rural banks, co-operative banks, corporates, individuals, etc. The company was incorporated in 1996 and is based in New Delhi, India. PNB Gilts Ltd. is a subsidiary of Punjab National Bank.

How the Company Makes Money

PNB Gilts generates revenue through several key streams, primarily from the buying and selling of government securities and other fixed-income products. The company earns income through the differences in the buying and selling prices (spread) of these securities. Additionally, it derives revenue from its market-making activities, where it facilitates transactions and provides liquidity in the bond market. The company also earns fees from portfolio management and advisory services offered to clients, including institutional investors and high-net-worth individuals. Strategic partnerships with financial institutions and participation in government auctions further enhance its revenue potential, while the overall interest rate environment and government policies significantly influence its profitability.

PNB Gilts Limited Financial Statement Overview

Summary

PNB Gilts Limited shows strong operational efficiency with high gross and EBIT margins. However, challenges with revenue growth, cash flow management, and high leverage pose financial risks. Recent improvements in ROE are positive, but the company needs to address cash flow issues and stabilize revenue growth.

Income Statement

PNB Gilts Limited shows strong gross profit margins consistently above 97%, indicating efficient cost management. However, the net profit margin has been volatile, with a significant drop in 2023 due to a net loss. Revenue growth has been inconsistent, with a decline in 2025. The EBIT and EBITDA margins are robust, reflecting operational efficiency, but the recent revenue decline is a concern.

Balance Sheet

The company has a high debt-to-equity ratio, peaking at over 16 in 2024, indicating significant leverage and potential financial risk. Return on equity has fluctuated, with a negative ROE in 2023, but improved to 15% in 2025. The equity ratio remains low, suggesting reliance on debt financing.

Cash Flow

PNB Gilts Limited faces challenges with negative operating and free cash flows over the years, indicating cash management issues. The free cash flow to net income ratio is consistently around 1, but the operating cash flow to net income ratio is negative, highlighting cash flow inefficiencies.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	16.79B	15.56B	13.83B	9.50B	8.43B	10.63B
Gross Profit	16.40B	15.23B	13.51B	9.28B	8.19B	10.43B
EBITDA	17.38B	16.27B	15.26B	8.89B	7.22B	10.11B
Net Income	3.40B	2.33B	694.11M	-772.22M	1.66B	4.54B
Balance Sheet
Total Assets	0.00	247.03B	245.40B	214.97B	167.50B	121.40B
Cash, Cash Equivalents and Short-Term Investments	0.00	231.34B	222.17B	150.13B	133.94B	110.69B
Total Debt	0.00	223.84B	224.03B	384.81B	145.33B	197.28B
Total Liabilities	-15.45B	231.57B	232.10B	202.37B	153.23B	108.23B
Stockholders Equity	15.45B	15.45B	13.30B	12.60B	14.27B	13.16B
Cash Flow
Free Cash Flow	0.00	-1.98B	-28.77B	-46.53B	-45.64B	24.81B
Operating Cash Flow	0.00	-1.97B	-28.75B	-46.38B	-45.64B	24.83B
Investing Cash Flow	0.00	-9.75M	-10.47M	-144.23M	-6.31M	-12.09M
Financing Cash Flow	0.00	-378.88M	31.59B	46.18B	46.13B	-24.81B

PNB Gilts Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 78.71
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PNBGILTS, the sentiment is Neutral. The current price of 78.71 is below the 20-day moving average (MA) of 79.69, below the 50-day MA of 80.91, and below the 200-day MA of 93.06, indicating a bearish trend. The MACD of -0.86 indicates Positive momentum. The RSI at 46.60 is Neutral, neither overbought nor oversold. The STOCH value of 29.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:PNBGILTS.

PNB Gilts Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SMCGLOBAL	70 Outperform	₹16.13B	16.50	―	0.70%	-5.03%	-54.73%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
TFCILTD	66 Neutral	₹30.21B	24.83	―	0.92%	5.73%	12.29%
BFINVEST	62 Neutral	₹14.35B	17.06	―	―	―	―
ARMANFIN	60 Neutral	₹16.97B	-1,508.05	―	―	-6.03%	-100.77%
PNBGILTS	55 Neutral	₹14.22B	5.84	―	1.25%	-10.05%	-18.64%

PNB Gilts Limited Corporate Events

PNB Gilts Receives RBI Nod for Appointment of Bibhu Prasad Mahapatra to Board

PNB Gilts Limited has announced that the Reserve Bank of India has approved the appointment of Bibhu Prasad Mahapatra, Executive Director at Punjab National Bank, as an Additional Director (Non-Executive and Non-Independent) on its board, effective January 29, 2026. The induction of a senior executive from the parent bank onto the board is expected to further align PNB Gilts’ governance with its promoter’s strategic oversight and may strengthen coordination in policy, risk management, and business strategy for stakeholders across the group.

PNB Gilts Reshapes Senior Management and Governance Framework After Board Meeting

PNB Gilts Limited’s board has approved the company’s standalone unaudited financial results for the quarter and nine months ended 31 December 2025 and will publish the figures on its website and in newspapers as required by securities regulations. In the same meeting, the board implemented a significant reconfiguration of its senior management to bolster assurance, risk, compliance and technology oversight, appointing new Chief Financial, Technical, Risk, Compliance, and Information Security Officers, mostly drawn from parent Punjab National Bank, aligning its governance framework with recent Reserve Bank of India directions. The company also streamlined responsibilities at the top by relieving Company Secretary Monika Kochar of her additional Chief Compliance Officer charge while retaining her as Compliance Officer under listing rules, and designated newly appointed CFO Kishkanda Garg as the authorised person for determining materiality and advising on disclosures in the absence of the Managing Director & CEO, underscoring a stronger internal control and regulatory-compliance architecture.

PNB Gilts Limited Appoints New Additional Director

PNB Gilts Limited has announced the appointment of Smt. Anju Mittal as an Additional Director (Non-Executive & Non-Independent), following a nomination from Punjab National Bank and pending approval from the Reserve Bank of India. This strategic appointment is expected to enhance the company’s governance structure, leveraging Mittal’s extensive experience in compliance and risk management, which could positively impact PNB Gilts’ operational efficiency and stakeholder confidence.

PNB Gilts Appoints New Director to Strengthen Governance

PNB Gilts Limited announced the appointment of Smt. Anju Mittal as an Additional Director, following a nomination from Punjab National Bank and the approval of the Reserve Bank of India. This strategic appointment is expected to enhance the company’s governance and compliance framework, aligning with regulatory requirements and strengthening its position in the financial market.